Netflix is gobbling up Warner Bros! Will this acquisition change the future of cinema – or save it in the end?
When Netflix announced in early December that it was acquiring a substantial portion of Warner Bros. Discovery (WBD), it triggered one of the biggest debates in the film industry in recent years. For some, it’s a victory for streaming over traditional cinema, for others, the beginning of the end of the Hollywood studio system. There are voices that this is a moment that could spell the “apocalypse” of cinema. But some experts say the reality is not so clear-cut, and the outcome may be significantly different than it first appears.
To understand the impact of the whole deal, we need to look at what Netflix is actually gaining. Warner Bros. has long been one of the biggest movie houses in the world and their catalogue is, without exaggeration, a treasure trove of modern pop culture. There are legendary brands like Harry Potter, The Matrix, Game of Thrones, the entire DC comic universe, big action franchises like Mad Max, and new multimedia projects based on popular games like Minecraft. This is a huge boost for Netflix. It’s a library that gives it the ability to attract new subscribers while insuring the loyalty of existing ones.
It is the range of brands that is crucial. Streaming platforms have been dealing with slowing growth, rising costs and fiercer competition in recent years. Getting IP this strong means getting fuel that will last for years – new movies, spin-offs, series, reimaginings.
Critics fear that Netflix will start putting films that would have previously been shown in cinemas onto its platform after the acquisition. This would further weaken the already fragile position of cinemas, which are still recovering from the pandemic and from changing viewing habits.
But Tomas Vyskočil, founder of a server tracking movie ratings data, points out that this scenario is only partially plausible. Netflix may have a reputation as a streamer that likes to “download” content to itself, but in recent years it has become aware of one thing: cinemas still have value. Indeed, big movie premieres function not only as marketing but also as a source of significant revenue. If you have a strong brand, fans want to go to the premiere in person – it’s an event, an experience, a social ritual. And Netflix recognizes this potential.
Therefore, it can be predicted that while smaller and mid-sized films may head directly to Netflix in greater numbers, the biggest brands – especially those that demand high budgets and mass attention – are likely to continue to appear in cinemas. Disney and Universal are now using a similar model. Thus, cinema may remain the “first touch” with the audience before content moves to a streaming platform where it has a longer life.
It cannot be overlooked that Warner Bros. has gone through a tumultuous period over the last decade. They have changed owners, restructured management, cut budgets and changed strategy several times. For some of their brands, Netflix may have represented not only more stability, but finally a clear long-term vision. From this perspective, the acquisition may paradoxically be an opportunity for brands that have stagnated or remained “stuck” in limbo due to changing management priorities.
What is certain, however, is that this transaction will bring movements across the market. Other streaming services will have to respond – bolstering their own catalogues, joining forces or looking for a new operating model. More than ever, traditional studios will be thinking about where they make the most money and how best to monetise their brands. And cinemas? Cinema is probably not going to collapse overnight. Rather, it will undergo another wave of change. Perhaps it will focus more on the premium experience, on special screenings, on the event atmosphere. In other words, they’ll have to offer something that streaming won’t replace.
The acquisitions of Netflix and Warner Bros. Discovery is not just a business move. It is the beginning of a new phase that will shape how we consume movies in the years to come. It is not the end of cinema, but a new chapter in the film ecosystem. And only the next few years will tell how big a change it will really be.
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